Below is a fully detailed, exam-ready explanation of Service Encounters, including definition, types, differences, examples, challenges, and a complete section on Satisfaction with Technology-Based Services (online banking, apps, self-service kiosks, AI, etc.).
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SERVICE ENCOUNTERS (DETAILED NOTES)
1. Meaning of Service Encounter
A service encounter is the moment of truth when a customer interacts with the service provider.
It is the point where the customer forms impressions, evaluates service quality, and decides satisfaction.
Because services are intangible and inseparable, service encounters often determine the overall success of a service business.
Definition:
A service encounter is any direct or indirect interaction between the customer and the service provider during the process of service delivery.
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2. Importance of Service Encounters
Builds customer trust & perception
Helps form brand image
Influences customer satisfaction & loyalty
Determines success of service delivery
Helps identify gaps in service quality (SERVQUAL)
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3. Types of Service Encounters (Detailed)
Service encounters can be classified into three main types:
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**A. 1. Remote Encounters
No physical presence; interaction happens through technology.
Examples:
Online banking
Customer service call centre
Ordering food online
AI chatbots
ATM usage
Netflix streaming
Telemedicine
Features:
High convenience
Low human involvement
Standardized processes
Fast but less personal
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**B. 2. Phone Encounters
Customer interacts with the service employee through a telephone call.
Examples:
Insurance claim call
Booking hotel rooms
Order confirmation
Telecom customer care
Helplines & customer support
Features:
Voice-based communication
Requires listening & empathy
Tone matters more than words
Often used for problem-solving
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**C. 3. Face-to-Face Encounters
Direct interaction between customer and service provider.
Examples:
Restaurant service
Hospital consultation
Hotel check-in
Retail stores
Banks
Coaching classes
Features:
High human interaction
Customer experience is influenced by:
Facial expressions
Body language
Behaviour & attitude
Ambience
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4. Key Differences Between Types of Service Encounters
Type Involvement Example Advantages Limitations
Remote (online/digital) Low human contact ATM, Apps Fast, convenient, 24×7 Tech issues, no emotions
Phone encounters Medium human contact Customer care Personalized voice assistance No physical cues, long wait
Face-to-face High human contact Restaurant, hotels Best communication & experience Time-consuming, costly
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5. Components of a Successful Service Encounter
A. The Service Provider’s Role
Courtesy
Professional attitude
Speed
Clear communication
Problem-solving skills
Body language (in face-to-face)
B. Customer’s Role
Providing correct information
Arriving on time
Following procedures
Being cooperative
C. Service Environment
Physical ambience
Cleanliness
Technology
Layout & design
D. Technology Support
Mobile apps
CRM systems
Chatbots
POS machines
Self-service kiosks
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6. Satisfaction in Service Encounters
Customer satisfaction depends on whether performance meets expectations.
Factors that influence satisfaction:
Service quality
Timeliness
Empathy
Assurance
Reliability
Courtesy
Personalization
Convenience
Technology performance
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7. Technology-Based Service Encounters (TBS)
(VERY IMPORTANT for MBA & service marketing exams)
Technology has transformed how customers interact with services.
Examples include:
Online shopping
ATMs
Self-check-in kiosks
Telemedicine
Online coaching
Food delivery apps
AI chatbots
UPI payments (PhonePe, Google Pay)
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A. Benefits of Technology-Based Service Encounters
1. Speed & Convenience
Customers can access services anytime & anywhere.
Example: UPI payments complete transactions in seconds.
2. 24×7 Availability
No time barriers.
Example: Online ticket booking on IRCTC.
3. Lower Cost
Companies reduce staff cost through automation.
Example: ATMs reduce the need for bank tellers.
4. Consistency & Accuracy
Technology reduces human error.
Example: Online bill payments automatically calculate amounts.
5. Customer Control
Customers can track orders, modify details, and self-serve.
Example: Swiggy/Zomato live order tracking.
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B. Challenges of Technology-Based Service Encounters
